When the Co-op Refinery Complex needed to improve railcar movement, they asked Cando Rail & Terminals to build a solution.

Our solution: To design, finance, build and operate a dedicated customer staging and storage yard.

“We’re able to control our day-to-day operations more efficiently and execute according to plan because of the holding yard and the spotting and pulling service,” says Craig Kezama, Petroleum Distribution Services Manager for Co-op. “Cando brings a much more efficient use of our rail obligation, both inbound and outbound.”

The Problem

The Co-op Refinery Complex in Regina, SK, owned by Federated Co-operatives Limited, had just finished a $2.8 billion expansion that increased the overall refinery output by 40,000 barrels of gasoline and diesel a day. CRC needed to improve the refinery’s rail service by increasing efficiency and reducing demurrage costs and taking advantage of the additional refinery output. It also needed a place to stage railcars, especially during downturns in the global economy.

CRC came to Cando Rail & Terminals to build a customized solution that would improve efficiency, reduce costs, and maximize production.

The Solution

Cando Rail & Terminals designed, built, and financed a dedicated railcar staging terminal near the existing CRC site. We were already embedded in CRC’s operations, providing railcar switching, track inspection and maintenance, and mobile transloading services, so we knew where the inefficiencies were. We took an innovative and custom approach to creating the staging facility to meet all the CRC’s needs.

As part of the design, development and building process, we secured the land near the refinery, worked with CN to secure running rights on its track, and built a locomotive shed to support repairs and minimize winter idling.

The Impact

Cando Rail & Terminals helped CRC gain efficiencies by building an integrated service solution including a staging yard and on-demand 24-hour switching services that have its railcars available when it wants them. The integrated solution also reduces the need for additional capital expenditures by allowing CRC to turn their loading/unloading infrastructure more often. Located just two miles from the refinery, the terminal has space to stage up to 255 railcars and is immediately adjacent to three CN tracks used to interchange traffic between CN and the refinery.

With the increase in annual railcar movements at the refinery, CRC has been able to manage costs and gain efficiencies by having Cando Rail & Terminals staging and switching services integrated with the refinery loadout operations.